Legal & General Investment Management (LGIM) has launched the L&G Global Brands UCITS ETF.
The Article 8 ETF will be housed in LGIM’s ‘Access’ range and comes with a 0.39% total expense ratio (TER).
LGIM will collaborate with independent brand valuation consultancy Brand Finance as part of the fund’s investment strategy.
Brand Finance determines the value of brands using metrics including performance, impact and forecast revenues to produce a brand value score.
The ETF’s index will track the performance of a basket of stocks based on Brand Finance value scores, while also integrating liquidity, quality and ESG screens.
As part of the process, the fund will restrict the weighting of any single company to a maximum of 5% of the total portfolio.
Richard Haigh, Brand Finance managing director, said: “A business’s brand is one of its most important financial assets. Used correctly, strong brands can unlock vast financial value for businesses and shareholders.
“Brand Finance is excited to partner with LGIM to launch this ETF and demonstrate the added value that brands bring. This will continue to reaffirm the role of brand in the boardroom.”
The strategy is listed on both the London Stock Exchange and Borsa Italiana, while LGIM said it expects to be listed shortly on XETRA Deutsche Boerse and SIX.